Semiautomated Packing Unit The final project that Mike is considering is a semiautomated packing unit that would cost $390,000 including installation. The new packing unit would be depreciated on a seven-year MACRS schedule. The economic life of the packer is ten years, at which time the unit would have no market value. Currently Clear Lake Bakery has a wrapping machine which was purchased four years ago for $90,000 and was being depreciated on a seven-year MACRS schedule. The wrap- per has a current market value of $20,000. The packing unit will result in a sav- ings in operating expenses of $90,000 per year. These expenses are expected to increase 5 percent per year over the ten-year economic life of the unit. 8. Determine the net present value of the semiautomated packing unit. Semiautomated Packing Unit The final project that Mike is considering is a semiautomated packing unit that would cost $390,000 including installation. The new packing unit would be depreciated on a seven-year MACRS schedule. The economic life of the packer is ten years, at which time the unit would have no market value. Currently Clear Lake Bakery has a wrapping machine which was purchased four years ago for $90,000 and was being depreciated on a seven-year MACRS schedule. The wrap- per has a current market value of $20,000. The packing unit will result in a sav- ings in operating expenses of $90,000 per year. These expenses are expected to increase 5 percent per year over the ten-year economic life of the unit. 8. Determine the net present value of the semiautomated packing unit